[HD2 Android SD Development] daedric:
First, you're seeing it very wrong:

set mtype 2524
set ramaddr 0x11800000
set ramsize 0x1e400000
set initrd_offset 0x00a00000
set KERNEL zImage
set initrd initrd.gz
set cmdline "rel_path=ics data_size=256 lcd_density=240 gps_zone=sg"
[B]boot[/B]

### Leave cmdline as default if you don't know what you are doing ###
# default: set cmdline "rel_path=Android"
# sample: set cmdline "rel_path=Android data_size=512 lcd_density=200 gps_zone=us"

### Meaning of Variable ##################################################
# rel_path: folder name of the build	#
# data_size: size of data.img, 1024 means 1024MB	#
# lcd_density: default value for android is 240
# gps_zone: country code, us, fr, jp, etc.
### Leave cmdline as default if you don't know what you are doing ###

Everything after that "boot" is a comment, so your rel_path = ics.

Put everything there and it should work, which leads me to your second and worst problem:

Here's a list of that 7z content:

Listing archive: ICS-Beta2-WiFi-Market-GL.7z

--
Path = ICS-Beta2-WiFi-Market-GL.7z
Type = 7z
Method = LZMA BCJ
Solid = +
Blocks = 2
Physical Size = 119164276
Headers Size = 571

Date Time Attr Size Compressed Name
------------------- ----- ------------ ------------ ------------------------
2008-04-16 04:40:50 ....A 2806028 119108635 zImage
2011-11-27 16:51:28 ....A 1787176 initrd.gz
2011-11-27 13:42:54 ....A 536870912 data.img
2011-08-10 13:53:04 ....A 5155 update/update.initrd.gz.sh
2010-08-04 16:31:02 ....A 1 update/data_files/local/rights/mid.txt
2011-11-25 03:09:54 ....A 746 startup.txt
2011-11-27 13:39:26 ....A 245366784 system.ext2
2010-07-08 21:08:14 ....A 4096 55070 clrcad.exe
2010-12-10 15:45:06 ....A 162304 haret.exe
2011-11-27 17:48:10 D.... 0 0 update/data_files/shared_prefs
2011-11-27 17:48:10 D.... 0 0 update/data_files/property
2011-11-27 17:48:10 D.... 0 0 update/data_files/misc
2011-11-27 17:48:10 D.... 0 0 update/data_files/lost+found
2011-11-27 17:48:10 D.... 0 0 update/data_files/local/tmp
2011-11-27 17:48:10 D.... 0 0 update/data_files/local/rights
2011-11-27 17:48:10 D.... 0 0 update/data_files/local
2011-11-27 17:48:10 D.... 0 0 update/data_files/etc
2011-11-27 17:48:10 D.... 0 0 update/data_files/dontpanic
2011-11-27 17:48:10 D.... 0 0 update/data_files/data
2011-11-27 17:48:10 D.... 0 0 update/data_files/dalvik-cache
2011-11-27 17:48:10 D.... 0 0 update/data_files/app-private
2011-11-27 17:48:10 D.... 0 0 update/data_files/app
2011-11-27 17:48:10 D.... 0 0 update/data_files
2011-11-27 17:48:10 D...A 0 0 update
------------------- ----- ------------ ------------ ------------------------
787003202 119163705 9 files, 15 folders

So, you're missing alot of files and/or file content.

On Android dev settings, activate CPU usage.

You'll get those 3 indexes like you normaly get in linux:

21:06:52 up 11 days, 20:11, 2 users, load average: 0.19, 0.24, 0.14

.. now my index are normal for a computer, 0.19, 0.24, 0.14.

On Tytung android i get 1.72, 2.88, 3.14, on this rom i get 7.x on all 3 indexes.

Default rom after boot. It could be the first boot odexing files, first sync, etc etc... but still. No new kernel, no gov change, no OC. Out-of-the-box.